Netflix Plans to Charge Money for Password Sharing: What You Need to Know
Delhi : Netflix is testing this functionality in a few areas, and we've all heard that the OTT platform plans to start charging more money if you share credentials with people other than your housemates. This is now anticipated to launch "more broadly" by March.
Increased Access to Netflix's Paid Password Sharing
According to a recent earnings report from Netflix, its paid-sharing effort will expand by the end of the first quarter of 2023, giving you the choice to pay more if you want to continue sharing your credentials. Therefore, you have two options: stop sharing your Netflix password or make the individuals who you share it with pay more.
Netflix predicts that this shift will elicit a "cancel reaction" in many areas, but that it will serve its long-term income aim. "We estimate that this will result in a substantially different quarterly paid net adds pattern in 2023, with paid net additions likely to be bigger in Q2'23 than in Q1'23," the research states.
However, no pricing or other specifics regarding the functionality have been published. Last year, Chile, Costa Rica, and Peru were the first countries to attempt paid password sharing. People were given a new add-on option that required others to validate their login.
It also added the ability to transfer profiles and manage logged-in devices, which could help to reduce the habit of sharing a Netflix account with numerous people.
It remains to be seen how this new function is received, given that a previous report did not indicate a positive side to it. While there is no harm in paying to share a Netflix account, the practise of using it for free will not be easily broken. We'll keep you updated if this makes it to India. The earnings report also revealed that Netflix CEO Reed Hastings is stepping down to make way for co-CEO Ted Sarandos and COO Greg Peters.
Netflix also claimed revenue growth in Q2 2022, however it was less than what was announced in Q4 2021.